France 10-Year OAT Yields Fall as Inflation Eases

2026-01-06 10:29 By Joana Ferreira 1 min. read

France’s 10-year OAT yield dropped to 3.55% as investors digested fresh European inflation data.

Preliminary figures showed the EU-harmonized CPI, the ECB’s key inflation gauge, rose just 0.7% year-on-year, the weakest reading since May and below expectations of 0.8%.

Germany’s harmonized inflation also eased more than anticipated, falling to 2%, the lowest since July and below forecasts of 2.2%.

Looking ahead, market participants are bracing for a record €310 billion in French debt issuance in 2026.

The government begins the year without a fully approved budget after lawmakers failed to pass the 2026 finance bill in December.

To maintain funding, authorities have invoked a special emergency budget law, temporarily rolling over last year’s budget until a new bill is adopted.



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